Nationwide to acquire Allstate employer stop loss business for $1.25 billion
Nationwide has entered into a definitive agreement to purchase Allstate’s employer stop loss segment for $1.25 billion. The transaction is expected to close in the second half of 2025, subject to customary closing conditions.
This acquisition will further strengthen and diversify Nationwide Financial’s portfolio, expanding the company’s ability to sell stop loss insurance to small businesses. This new business will lay the foundation for Nationwide to continue to add capabilities for significant growth in employer benefits.
“As Nationwide continues to focus on our mission to protect people, businesses and futures with extraordinary care, this acquisition is a strong fit. We are extending our protection solutions to meet the needs of business owners today and into the future.” – Nationwide CEO Kirt Walker.
“Acquiring Allstate’s employer stop loss segment will broaden Nationwide Financial’s portfolio, meeting the needs of small businesses, allowing us to serve more customers and positioning us as a leading provider in the stop loss industry. This represents a significant investment in the stop loss market, adding experienced talent with proven business results, protecting over 13,000 small businesses and complementing our existing offerings in the market while accelerating our opportunity for growth.” – John Carter, president and chief operating officer of Nationwide Financial.
“We reached another milestone in the strategy to maximize shareholder value by combining the Health & Benefits businesses with companies that have greater strategic alignment. Group Health provides stop-loss insurance to small businesses, which will gain access to Nationwide’s complementary product offerings. When combined with the previously announced sale of Employer Voluntary Benefits to StanCorp Financial Group, Inc., (The Standard), total sale proceeds will be $3.25 billion. The Individual Health business, with Adjusted Net Income of $18 million for the first nine months of 2024, will either be retained or combined with another company.” – Tom Wilson, Allstate’s Chair, President and CEO.
